Q. Pioneer Panel is the first MDF factory in Delhi-NCR. How has been your journey so far?
Pioneer Panel Product started in the year 2016 with 180 cbm/day production line. Later on, we have added a thin MDF manufacturing line of 180 cbm/day. The company received a very positive response from the market till now. The journey of Pioneer Panel Product so far has been very good and is going well with the growth of the industry. I would say that the winning part is that my plant is located in Delhi-NCR and which helps us to serve better in this region.
We procure wood either from UP or any other place; it does not matter; the biggest achievement of our success is our service and if a dealer or distributor needs material, they can get it within 24 hours from our factory. We can provide them at a reasonable price in any quantity, whether it is plain MDF or pre-laminated.
Q. What are your production capacity, range, and thicknesses in offerings?
360 cbm/day, out of which we are able to achieve 300 cbm/day. We have a complete range from 2.1 mm to 25 mm. It includes both plain and pre-laminated MDF. When it comes to value added materials, pre-laminated MDF accounts for 50–55% of our production, while thin like 2.1–5 mm segment pre-laminated accounts for 10%–12%. Besides, our core strength is PDHMR, of which 3mm, 5mm, 7.5mm, 11mm, 17mm, and 18mm make up good production supplied to the market.
Q. What is your sales strategy to penetrate more market?What is your sales strategy to penetrate more market?
When we saw that MDF distributors were not responding that much, as they were already associated with other companies. To expand our market, we contacted those dealers who were selling only plywood and with them, our sales increased dramatically.
Q. Due to rising timber prices, the panel industry is facing numerous challenges, and a large amount of MDF is being added. How do you see that?
This is a dangerous situation for the panel industry, and in coming times, a large capacity will be added. Nearly 2500 cbm/day of capacity will be added over the next year and a half. Wood prices, which are nearly Rs 6 per kg, will be under such pressure that MDF plants will be forced to purchase timber at much higher prices. The price is expected to rise to Rs 7.5/kg in the near future and managing production at this price would remain a difficult task for the domestic industry competing with imports.
Q. Imports are said to have no effect on North Indian players. What do you say?
There is no problem for players in northern India as long as wood prices remain at Rs 6 per kg but in future looks difficult. In this competitive environment, the companies are also not discussing raising the prices of finished goods. They are already falling below capacity utilization. As a result, North India will not be spared from imports. These days, when the imports increase at the seaport area, the market comes under pressure due to the pricing factor.
Q. High Density + High Moisture Resistant MDF is a blessing for the industry, but there is a report that quality consistency is lacking in this segment as many players offer mixed material, deteriorating the quality. What do you think?
When High Density + High Moisture Resistant, Boards awareness increased, it was claimed as a replacement for M R plywood. This is an excellent product, even today. In this segment, Pioneer Panel Product made PDHMR. With its success, many other companies also entered this business, and some of them introduced counterfeit products of lower quality into the market, claiming they were similar to high-density+ high-moisture products.
That is damaging the market to a great extent. Quality players have no choice because they cannot prevent others from producing their product. So, until we create awareness in the market and educate the dealers and distributors about quality, they will continue to impact the market. Many leading players are doing a great job in terms of creating awareness. We also hold carpenters' meetings on a regular basis to educate them, and we are getting a lot of positive feedback. It has been observed that, after losing momentum, the Punjab market is regaining it due to increased quality awareness.
In a few markets, like Delhi NCR, the duplicate greencolored material is still being sold. I hope that with increasing awareness in six months, the counterfeit product will lose its ground in the market.
MDF IS THE ONLY PRODUCT WHICH HAS VERSATILE PROPERTIES
Q. MDF market is becoming tougher with price pressure, what is your view?
Yes, I agree as the market has become very tight. We can overcome on this situation by providing quality products with right price along with better services.
Q. Architects are not much interested in MDF, why? What is your advice to them?
Yes, still we have to work more in this segment. We have to make them understand as MDF is right choice for this modern furniture and interior needs.
Q. What are new products coming under Pioneer Panels in future?
We will introduce shortly new colour range of PDHMR for Vanity.
Q. Do you think that MDF applications will grow in Modular Furniture/OEM? How?
Definitely, still a lot of scope is there. MDF is the only product which has versatile properties and can use anywhere in interior work.
Q. What is your next plant for the years 2023–2024 for MDF?
Seeing the market scenario at present, we are focusing on increasing capacity utilisation from the current 80% to 110%. Forecasting the MDF market would be much earlier because there are so many different panel industry segments, such as plywood, particle board, MDF, and others like WPC. If we see the trend for the last two to three years, the market is definitely expanding, but capacity installation is going on much faster than the market expansion. So, I think for the next two years there will be pressure on sales as well as price for MDF, but after that it will see a rising market if all the companies try to get anti-dampening duty (ADD) on MDF imports.
ON UNIQUE DECOR
Q. You print décor paper, what developments have you observed over the last few years?
We have 18 lines at Unique Decor, 14 of which are manufactured to Indian standards, and four of which we have installed in the last three years of high speed. We make international-grade papers, and our quality and service are very good. People are more inclined towards our side than the Chinese, as they say that if good quality paper is available domestically; looking towards the Chinese has no sense. For the paper, we have tied up with good companies. Our Color ink is manufactured by Europe's top ink manufacturers. It gives guaranteed UV light fastening that can be used in exterior-grade laminates as well. Besides, Unique Decor is going to install two more high-speed lines in the next three months. By the next financial year, we will have to reach our production capacity of 750 tonnes per month.
Q. Several new laminate plants are being built in north India, and several new plants have previously come up. What is your guidance to them?
Currently, there is pressure on the market in terms of sales. For the time being, this is a phenomenon, but if the players produce high-quality products rather than low-grade urea-based liner laminates, the market will grow rapidly. The urea-based liner grade is increasing, but its future is not good. We must keep the market moving forward by providing high-quality products to customers.
Q. What changes do you see in laminate manufacturing with high speed lines?
This is not just a name for high-speed machines, ACTUALLY this is high tech lines; the paper used on local machines had better water observance and smoothness, due to that result not good in finish product but with high-speed line papers, it became an international standard with its set parameters. It is designed in the same manner that the machine requires. On the local machines, the design registration method was not quite good. The output design quality was indeed inferior to previous lots.
Because the high-tech machines are completely automatic, once the registration is set, the repeat production comes out perfectly with 100% similar design quality because it automatically changes rolls and sets the previously fixed registration mark. With this advantage of left-to-right registration and up-to-down registration control, the output prints are much better and more beautiful compared to the earlier ones.
Q. For printing, the base paper and cylinder are the two most important components for innovation in printing. What do you think? Will India be self-reliant in it?
I don't see India becoming self-reliant in terms of printing cylinders and ink even for the next ten years. The main reason behind this market size not very big as packaging industry, the cylinder maker and ink developer not very much interested to go in deep in this and secondly price of international market in printing cylinder and ink also same demanded by local manufactures which is currently active in this line, so not a very much scope in INDIA next seven to ten years in this line to become self -reliant.
Q. What is your suggestion on gsm use for the decor paper manufacturers in Indian décor paper printing?
As per the requirement of international standards for making good laminate 70 gsm paper must be used in any thickness of laminate but In India, 70 gsm paper used in only .9 and 1 mm laminates and lower thickness made by 50-60 gsm But now, with increased awareness, people have come to understand that 50-gsm paper is deteriorating the quality of laminates, so a 60-gsm paper has been developed by Indian players. 60 gsm has almost become a standard thickness of paper used in the laminate industry in India.